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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Kory who wrote (9018)	12/16/1998 6:41:00 PM
From: AreWeThereYet	Read Replies (1) \| Respond to of 14266

Kory, >> although there were tons of people saying that Quest would not be as big as it was either. << My research indicated that Quest is only a so-so game, THQ seemed to rush the title out asap and cut a few corners. There are lots of room to improve on its sequel. It will be a much better product if it can extend the play time, add the capability of inventory and buying feature, also some simple rule to have less people walking around the village during mid-night... >> I admit that I am in a minority who is still somewhat doubtful on the success of this first PSX title << Ditto here but there is a potential that Sony may bundle Rugrat with its console. Speaking about OEM, 3Dfx has acquired STBI and you know the relationship between 3Dfx and GameFX, hmmmmmmm......... >> AKLM was a newbie to the arena. << Not really but Warzone is the first which deserves some respect :o) >> G Darius has a niche. << I am surprised that most agree G. Darius is the best shoot'em up and many actually like it over Square's Einhander. THQ will put more effort on PC game, see how things will work out next year. All the best to THQI and two stocks start with letter "A" :o) aC

To: Kory who wrote (9018)	12/17/1998 3:11:00 PM
From: Quad Sevens	Read Replies (1) \| Respond to of 14266

<< Even assuming they sit on the money and earn 10%, the interest alone would earn $.50 annually from here on. Take the $.50 they could earn without WCW plus the interest earnings and you have $1 per share without really doing much of anything. At today's price, this would yield a PE of 28, not exactly cheap, but not expensive by todays standards. >> No one can earn a risk-free after-tax return of 10% on cash. Maybe 3.5%. At this point in the argument you're making, cash sitting in the bank should be accorded a PE of 1. (How much would you pay for the $20,000 sitting in old stodgy Aunt Mary's bank account?) So .... giving THQ a PE of 30 on non-WCW operating earnings of 50 cents, we get a price of $15.15 for THQ. Of course we believe management can do better than 3.5% by using the cash, and eliminating WCW from THQ's earnings model is silly, but that's a different argument. Best, Wade